Manly Manufacturing Ltd Is Evaluating an Expansion of Its Business

question 40

Multiple Choice

Manly Manufacturing Ltd is evaluating an expansion of its business by purchasing new manufacturing equipment.The equipment has an installation cost of $26 million,which will be depreciated straight-line to zero over its three-year life.If the plant has projected net income of $2 348 000,$2 680 000,and $1 920 000 over these three years,what is the project's average accounting return (AAR) ?

• A)11.69 per cent
• B)14.14 per cent
• C)15.08 per cent
• D)17.82 per cent
• E)19.21 per cent

Understand Skinner's perspective on human behavior and the role of the environment.

Recognize the methods and importance of behavior modification techniques.

Differentiate between concepts of punishment, extinction, and negative reinforcement.

Grasp the concept of superstitious behavior in the context of reinforcement schedules.

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Definitions:

Average Costs

The total costs divided by the number of units produced, giving a per unit cost average.

Total Variable Cost

The sum of all costs that vary with output level, including materials, labor, and other costs that increase with production volume.

Relevant Range

The range of activity within which the assumptions about fixed and variable cost behavior are valid.

Average Costs

The total costs (fixed and variable) divided by the total quantity produced, representing the cost per unit of production.